Green Gas Market Set to Witness Strong Expansion Amid Global Transition to Clean Energy 2025-2032 | Coherent Market Insights

The Global Green Gas Market size is estimated to be valued at USD 25.6 billion in 2025 and is expected to reach USD 38.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2025 to 2032. This market forecast underscores rising demand for low-carbon gas substitutes and expanding green gas infrastructure worldwide. Driven by stringent decarbonization mandates and rising renewable portfolio standards, the Green Gas Market is reshaping global energy systems across power generation, transport and heating. Our market insights and rigorous market analysis identify high-impact market opportunities in biomethane and power-to-gas integration, powering sustainable business growth.

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Key Takeaways:

Region:
• North America: Leadership in biomethane projects, driven by US and Canadian incentives.
• Latin America: Rapid agricultural-waste feedstock conversion in Brazil and Argentina.
• Europe: Policy-backed expansion; Germany mandated 10% gas grid blending by 2030.
• Asia Pacific: China and India scaling anaerobic-digestion capacity for rural heating.
• Middle East: Pilot power-to-gas facilities in UAE leveraging solar PV.
• Africa: Emerging wastewater-to-biomethane initiatives in South Africa and Morocco.

Segment Covers:

• Feedstock - Agricultural waste, municipal solid waste and wastewater: used in UK and France for biomethane injection.
• Technology - Anaerobic digestion, gasification and pyrolysis: Germany's anaerobic units grew 15% in 2024.
• Application - Power generation, transportation and industrial heat: Scandinavian fleets adopted compressed biomethane in 2025.

Growth Factors:

• Policy Support: US Inflation Reduction Act extended tax credits to 2030, boosting biomethane capacity by 12% in 2024.
• Infrastructure Investment: European Commission allocated €300 million in 2025 for green gas grid upgrades.
• Corporate Off-take Agreements: Major utilities signed 5 million MMBtu deals in 2024, accelerating market growth strategies.

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Market Trends:

• Power-to-Gas Expansion: Global P2G installations rose 22% in 2024, with 520 MW electrolysis capacity online.
• Carbon Capture Integration: 30% of new anaerobic units in 2025 include CCS, cutting CO2 by 85%.
• Digitization & IoT: Real-time monitoring boosted plant uptime by 8% in 2024, optimizing supply-side dynamics.

Actionable Insights:

• Production Capacity: Global biomethane capacity hit 32 bcm/year in 2024, up from 28 bcm in 2023.
• Pricing: Average green gas market revenue per MMBtu stood at USD 6.20 in Q2 2025, up 4% YOY.
• Exports & Imports: Europe's biomethane exports climbed 18% in 2024; APAC imports rose 14%.
• Use Cases: Transportation demand surged 12% in 2025, driven by CNG bus fleets in South Korea.
• Nano-Indicators: Individual digester upgrades delivered 5% higher methane yield at 50 C temperature.

Market Key Players:

• Air Liquide
• Linde
• Engie
• Shell
• TotalEnergies
• Eni
• Gasum
• Greenlane Biogas
• EnviTec Biogas
• Xergi
• Biogest
• Thyssenkrupp
• Wärtsilä
• Naturgy
• ITM Power
• Siemens Energy
• Enerkem
• Bioenergy DevCo

Competitive Strategies:

• Air Liquide and Linde formed a joint venture in 2024, consolidating green hydrogen blending and boosting combined supply capacity by 20%.
• Engie acquired a 60% stake in a German biomethane network in Q3 2025, driving regional market share gains.
• Shell partnered with Xergi to co-develop a 100 MW power-to-gas plant in Denmark, achieving 30% cost reduction in electrolysis by late 2025.

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FAQs

1. Who are the dominant players in the Green Gas Market?
Leading market companies include Air Liquide, Linde, Engie, Shell, TotalEnergies and Gasum, accounting for significant industry share across feedstock-to-grid value chains.

2. What will be the size of the Green Gas Market in the coming years?
The market size is projected to grow from USD 25.6 billion in 2025 to USD 38.8 billion by 2032 at a 6.4% CAGR, backed by policy-driven market forecast scenarios.

3. Which end-use industry has the largest growth opportunity?
Transportation, especially heavy-duty fleets using compressed and liquefied biomethane, is expected to capture the highest market growth, supported by green gas revenue streams.

4. How will market development trends evolve over the next five years?
Key market trends include power-to-gas rollouts, carbon capture integration in anaerobic digestion and advanced digitalization of midstream operations.

5. What is the nature of the competitive landscape and challenges in the Green Gas Market?
The market faces challenges such as feedstock variability and grid interconnection regulations, but competitive strategies focus on vertical integration and long-term offtake agreements to secure market position.

6. What go-to-market strategies are commonly adopted in the Green Gas Market?
Players pursue M&A to expand production capacity, enter joint ventures for technology sharing and secure green gas offtake contracts with utilities and transport operators.

✍️ Author of this marketing PR:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.

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